Oil prices slumped on Tuesday as traders weighed the potential for increased domestic production against current inventories, according to Bloomberg MarketWatch.
April West Texas Intermediate crude fell 6 cents, or 0.1%, to settle at $53.14 a barrel on the New York Mercantile Exchange.
May Brent crude, the global benchmark, lost 9 cents, or 0.2%, to settle at $55.92 a barrel on the London ICE Futures Exchange.
Growing domestic production is a prime concern in the market that could offset OPEC’s efforts to rebalance global supplies. In a monthly report issued on Tuesday, the Energy Information Administration raised its forecasts for U.S. crude output. The EIA reported this year’s average at 9.21 million barrels a day—reaching a record 9.73 million next year.
On Wednesday, the EIA will release its weekly data on domestic oil supplies. Analysts polled by S&P Global Platts forecast an increase of 1.6 million barrels in crude stockpiles for the week ending March 3.
At the CERAWeek energy conference in Houston, Saudi Arabia’s Energy Minister Khalid al-Falih said OPEC will continue to be the world’s “only catalyst” for stabilizing oil prices. Separately, OPEC Secretary General Mohammad Barkindo said commitment among countries that are part of the output pact “remains high.”
Meanwhile, April natural gas shed 7.7 cents, or 2.7%, to settle at $2.824 per million British thermal units on the New York Mercantile Exchange.
